Thousands of car dealerships’ operations crippled by cyberattack

ABC News

23 Jun 202401:26

Summary

TLDRThousands of car dealerships in the US and Canada faced severe disruptions after a cyberattack on major auto industry software provider CDK Global. The incident left dealers unable to process appointments for maintenance and repairs or complete sales transactions. Major auto companies like Ford, Stellantis, and GM confirmed the impact, with dealers resorting to manual processes. CDK Global is investigating the attack, which is reportedly demanding a ransom in the tens of millions of dollars to restore operations. The outage could last several days, causing delays and manual vehicle orders.

Takeaways

🚗 A major cyber attack has affected thousands of car dealerships, causing significant operational disruptions.
🔒 The software provider cdk Global was targeted by back-to-back cyber attacks, impacting its services.
🇺🇸🇨🇦 Roughly 15,000 auto dealerships in the US and Canada were hit by the cyber attacks.
🛠️ Dealers were unable to process appointments for maintenance and repairs, as well as complete sales transactions.
🏢 Major auto companies like Ford, Stellantis, and GM confirmed that their dealers were affected by the outage.
📋 Manual processes were implemented by many dealers to continue serving customers during the system shutdown.
🚫 cdk Global shut down all systems as a precautionary measure and is currently investigating the incident.
🤔 The identity of the cyber attackers has not been disclosed by cdk Global, but ransom demands have been reported.
💰 Hackers are reportedly demanding tens of millions of dollars in ransom to restore operations.
⏳ The duration of the outage is uncertain, with dealers being told it could last several days.
📝 Some vehicle orders are being taken manually, reverting to an old-fashioned way of doing business.

Q & A

What is the main issue discussed in the script?
-The script discusses a cyber attack that has crippled operations at thousands of car dealerships, affecting their ability to process appointments and sales transactions.
Which company was targeted by the cyber attack?
-CDK Global, a major auto industry software provider, was targeted by the cyber attack.
How many auto dealerships were affected by the cyber attack?
-Approximately 15,000 auto dealerships in the US and Canada were affected.
What services were impacted by the cyber attack on CDK Global?
-The cyber attack impacted services such as processing appointments for car maintenance and repairs, as well as completing sales transactions including signing buyers up for financing and insurance.
Which major auto companies have confirmed the impact of the outage on their dealers?
-Ford, Stellantis, and GM have confirmed that the outage has impacted some of their dealers.
What measures did CDK Global take in response to the cyber attack?
-CDK Global shut down all systems as a precaution and is currently investigating the incident.
Has CDK Global identified the perpetrators of the cyber attack?
-The script does not mention that CDK Global has identified the perpetrators, but Bloomberg reports that the hackers are demanding ransom in the tens of millions of dollars.
How are the affected car dealers coping with the outage?
-Many dealers are switching to manual processes to serve customers during the outage.
What is the current status of the investigation by CDK Global?
-The script does not provide specific details on the status of the investigation, but it mentions that CDK Global has not responded to ABC's request for comment.
How long are the operations expected to be down according to the dealers?
-Dealers are being told that operations could be down for several days.
What alternative methods are being used by dealers to handle vehicle orders during the outage?
-Some vehicle orders are being handled the old-fashioned way, which implies writing them by hand.

Outlines

00:00

🚗 Major Cyber Attack on Auto Dealerships

A significant cyber attack on CDK Global, a major software provider for the auto industry, has severely impacted thousands of car dealerships across the US and Canada. The incident has left dealers unable to process appointments for maintenance and repairs or complete sales transactions, including financing and insurance sign-ups. Major auto companies like Ford, Stellantis, and GM have confirmed the impact on their dealers, who have had to resort to manual processes. CDK Global has shut down its systems as a precaution and is investigating the incident. The hackers are reportedly demanding a ransom in the tens of millions of dollars to restore operations, and the outage could last for several days, causing delays and manual vehicle order processing.

Mindmap

Keywords

💡Cyber attack

A cyber attack refers to any malicious attempt to disrupt, damage, or gain unauthorized access to computer systems, networks, or digital data. In the context of the video, a cyber attack has crippled operations at thousands of car dealerships, highlighting the severity of such incidents in today's digital world. The script mentions that the attack on CDK Global has resulted in an inability to process appointments and sales transactions, showcasing the immediate and tangible impact of cyber attacks on business operations.

💡CDK Global

CDK Global is a major auto industry software provider. It is the company that was targeted by the back-to-back cyber attacks mentioned in the script. The attacks on CDK Global have had a widespread effect on the auto dealerships in the US and Canada, as they rely on the company's software for various operational processes. The incident underscores the importance of robust cybersecurity measures for businesses, especially those that provide critical infrastructure for other industries.

💡Dealerships

Dealerships are retail establishments that sell vehicles, usually under franchise agreements with manufacturers. In the script, it is mentioned that approximately 15,000 auto dealerships in the US and Canada were affected by the cyber attacks on CDK Global. This term is central to the video's theme as it highlights the scale of the disruption caused by the attacks and the potential financial and operational challenges faced by these businesses.

💡Appointments

Appointments refer to scheduled times for services such as car maintenance and repairs. The script indicates that the cyber attacks on CDK Global have left thousands of dealers unable to process appointments, which is a critical service for dealerships. This inability to manage appointments showcases the disruption to customer service and the potential loss of revenue and customer trust that can result from such incidents.

💡Sales transactions

Sales transactions involve the process of selling goods or services, including the completion of paperwork, payment processing, and other related activities. The script mentions that the cyber attacks have impacted the ability of dealers to complete sales transactions, including signing buyers up for financing and insurance. This disruption in the sales process can lead to significant financial losses for the dealerships and inconvenience for customers.

💡Manual processes

Manual processes are methods of completing tasks without the aid of automated systems. Several major auto companies, including Ford, Stellantis, and GM, have confirmed that their dealers have switched to manual processes to serve customers during the outage caused by the cyber attacks. This shift to manual operations is an example of businesses adapting to unforeseen circumstances, although it may be less efficient and more time-consuming.

💡Ransom

A ransom is a sum of money or other consideration demanded or paid for the release of something, such as the return of stolen data or the restoration of system access. According to the script, the hackers are demanding tens of millions of dollars in ransom to restore operations. This highlights the financial motivation behind many cyber attacks and the extortion tactics used by cybercriminals.

💡Outage

An outage refers to a period when a service or system is not operational. In the context of the video, the term is used to describe the disruption of services at auto dealerships due to the cyber attacks on CDK Global. The outage has led to significant operational challenges for the affected businesses, emphasizing the importance of business continuity planning and the potential consequences of system downtime.

💡Stellantis

Stellantis is a multinational automotive manufacturing corporation, formed by the merger of Fiat Chrysler Automobiles and Groupe PSA. The script mentions Stellantis as one of the major auto companies impacted by the cyber attacks on CDK Global. This inclusion underscores the widespread impact of the incident across the auto industry and the vulnerability of interconnected systems in the digital age.

💡GM

GM, or General Motors, is an American multinational corporation that designs, manufactures, and sells vehicles and vehicle parts. The script identifies GM as another major auto company affected by the CDK Global cyber attacks. The mention of GM illustrates the broad reach of the incident and the potential for such attacks to affect even the largest and most established players in the industry.

💡Old-fashioned

The term 'old-fashioned' refers to something that is traditional or done in a way that was common in the past. In the script, the phrase 'the old-fashioned way' is used to describe how some vehicle orders are being written by hand due to the system outage. This highlights the contrast between modern, digital processes and the necessity to revert to more traditional methods in the face of technological disruptions.

Highlights

Thousands of car dealers in the US and Canada have been affected by a cyber attack.

The cyber attack has crippled operations such as oil changes and sales transactions.

CDK Global, a major auto industry software provider, was hit by back-to-back cyber attacks.

Approximately 15,000 auto dealerships were impacted by the incident.

Dealers were unable to process appointments for maintenance and repairs.

Sales transactions including financing and insurance sign-ups were also affected.

Major auto companies like Ford, Stellantis, and GM confirmed the impact on some of their dealers.

Many dealers switched to manual processes to continue serving customers.

CDK Global shut down all systems as a precaution and is investigating the incident.

The identity of the hackers has not been disclosed by CDK Global.

Bloomberg reports that hackers are demanding tens of millions of dollars in ransom.

The duration of the outage is uncertain, with dealers expecting it to last several days.

Customers may experience delays and some vehicle orders might be taken manually.

The old-fashioned way of writing orders by hand is being utilized as a temporary solution.

The cyber attack has highlighted the vulnerability of the auto industry to such incidents.

The impact on the auto industry could lead to a reevaluation of cybersecurity measures.